UPS acquiring Canada’s Andlauer Healthcare Group: Employee rights

What’s going on at UPS?

United Parcel Service (UPS) is looking to acquire a Canadian supply chain management company founded by Michael Andlauer, the current owner of the Ottawa Senators.

The American shipping giant recently announced that it’s entered into a “definitive agreement” to purchase Vaughan-based Andlauer Healthcare Group Inc. (AHG) for $2.2 billion CAD ($1.6 billion USD).

“Andlauer Healthcare Group will help us deliver expanded capability to our customers, driving best in class patient outcomes while contributing to our overall growth plans across the business,” Kate Gutmann, EVP and president of International, Healthcare and Supply Chain Solutions at UPS, said in a news release.

“This acquisition marks another important step in our declaration to be the number one complex healthcare logistics and premium international logistics provider in the world.”

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The all-cash transaction, which is still subject to various approvals, is expected to close in the “second half of 2025.”

As AHG prepares to come under new management, here are a few things that non-unionized employees in Canada need to be aware of.

Who pays severance if UPS doesn’t keep certain AHG employees?

In Canada, the “seller” of the business is responsible for providing proper compensation to staff who lose their job.

WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.

If UPS provides you with an employment offer, and you have a good reason for why you don’t want to accept it (i.e. different hours or pay), contact an experienced employment lawyer at Samfiru Tumarkin LLP. We’ll help you secure the severance pay you’re entitled to.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

LEARN MORE
• Sale of business in Ontario: Rights to severance
• Rights to severance in Alberta when your employer sells the business
• Employer sold the business in B.C.? Know your rights to severance

Can UPS make major changes to the jobs of AHG employees?

In Canada, non-unionized employees at AHG don’t have to accept substantial changes to their job that UPS might try to enforce.

Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal.

When significant adjustments are made to the terms of your employment without your consent, there’s a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

If you believe you’ve been constructively dismissed, don’t resign before contacting our firm.

ADDITIONAL RESOURCES
• Can my employer make changes to my job in Ontario?
• Job changes in Alberta: What employees need to know
• Changes to your employment in B.C.: Your rights

New employment contracts for AHG staff

If you work for AHG in Canada, and you receive a new employment contract from UPS, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized employees, including:

• Eliminating past service: The new owner might attempt to reduce or eliminate your years of service with your previous employer. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
• Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
• Ability to make changes: The new owner might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
• Starting a new job? Here’s how an employment contract could limit your rights
• Employment Law Show: 5 things to know about employment contracts
• Employment Law Show: Things to never do before seeking legal counsel

Do AHG staff still have the same workplace rights with a non-Canadian owner?

Yes. Companies outside of Canada can’t use employment contracts to get out of Canadian employment standards legislation.

While UPS is headquartered in the U.S., the shipping giant still has to adhere to the same employment laws that AHG was required to follow for its Canadian staff.

Workplace issue? Talk to our team

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, or B.C., our lawyers can review your situation, enforce your rights, and ensure you receive the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.